tv Street Signs CNBC April 10, 2014 2:00pm-3:01pm EDT
and only national is ranked highest in car rental customer satisfaction by j.d. power. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro. stocks are down across the board. the nasdaq once again bearing the brunt of the pain, mandy. it is a triple-digits loss for the dow as well. >> it really feels like easy come, easy go. they've all wiped out gains from the last two days. let's get straight to sheila at the nasdaq. sheila, tell us what's going on. >> the good news is that we do seem to be finding some sort of
a bottom. we are now down 2.5%. nonetheless, what a bloodbath here today. it's the same culprits, the biotechs, gillian, amgen, all really dragging down the nasdaq the most right now. also take a look at the ibb. this is the etf that actually tracks these biotech stocks. we're talking nearly bear market territory, if you take a look at how far that etf has fallen since its high this year. also, momentum stocks. brian, i know you hate the name momentum, but no names. netfl netflix, tesla, all down. having a huge impact on the nasdaq. i want to point out beyond the biotech and beyond the momentum names, this selloff we're seeing is fairly widespread. in fact, about 65% of the nasdaq 100 is down 10% since those highs this year. so we're talking about a really big widespread selloff, guys. >> all right, sheila. and you're right, nomenum.
we'll get to bob in a second. breaking news for you from phil le breau lebeau. >> this coming from general motors. first, the company is widening the first quarter charge that it will take to repair these vehicles. it is now going to be a charge of $1.3 billion. remember, originally it was $300 million, then they upped it to $735 million. now it will be $1.3 billion as the first quarter charge. also general motors has announced it will be adding an ignition lock to all of the recalled vehicles. that's 2.59 million recalled vehicles. general motors saying it will now put an ignition lock on those vehicles as part of the recall fix. brian, back to you. >> okay, thank you very much for that, phil lebeau. we can see on a generally down day, gm stock is marginally higher. straight out to bob pisani. as we were saying a couple of days of gains all but gone. >> yes. but remember, where we were just about two days ago on the
indices. it's the sector groups you want to watch. health care was the market leader as well as telecom. here you see health care on the weak side. pharma also weak. tech weak. everything down about 1.8%. telecom is a very small group. that's been a market leader but it doesn't have a big impact overall. selling stocks, buying bonds. ten-year yields right now. five-week lows. this is a one-month chart you're looking at as people move into the bond market. take a look at your previous leaders. you heard sheila talking about biotech. more importantly the broader pharmaceutical group. that, of course, includes all the drug stocks. there is your semiconducts and airlines. these are all market leaders for the year. you can see they are on the downside. down greater than the overall market. i want to just show you the dow. yesterday we were up 200 points and people were saying gee, that's pretty amazing. wonder why. and everybody blamed the fed. today we're down 200 points. essentially where we are is
where we were two days ago. the s&p is flat for the year. just a little bit of perspective. we want to watch the momentum names. but keep your eye on the broad market. flat right now. >> excellent point. s&p flat for the year. >> unfortunately, in on our meetings that are off camera. you heard it here first. at least on this show. the momentum stock term is over. it's gone. it's going to be hereby replaced at least for me with the term nomentum because stocks are as cold as a former foreigner hit. we hope to get cnbc's herb greenberg via morse code coming up in just a second. tony, time to by the nomentum rule. >> there's a lot of risk going on. print as well as migration over to desktop years ago. now if you have desktop
advertising, you need to move over to mobile. i think it's as simple as that. price is an issue. it's resetting. but if you look at a name like twitter, people have already reset some of those expectations. >> why do you have to buy anything? if you have to buy something, you're saying buy mobile names. but why buy anything? >> you have to own large cap exposure. if you're looking for a name that's going to grow, it's really hard to find that. in the caser twitter, i believe they can manage with price increases let alone if their user base is slowing. i think you get the secular trend that gives you some comfort. there is a valuation issue. but you're paying for that growth and the ability to say that ad spend is going to be 30 billion higher in mobile than it is today. >> we'll go to dan in just a second. before we leave you on twitter, i know you just initiated it this week with a buy rating. you say there's no fundamental reason for the selloff we've seen this year. why? >> i feel like, again, you're paying for this visibility. in the world of tv, there's a lot of pros and cons going on. for instance, we think amazon's going to have a disruptive move
inside of tv. if you think about mobile, you know, when somebody gets an ad budget these days, they have to allocate it increasingly to mobile. when you think about that is a tv of sorts, people are going to spend time with certain apps. twitter and facebook will be some of those that will capture the lion's share. >> dan, i know you've been covering a lot of these nomentum stocks. netflix. do you think there are any buy opportunities here? do you think the selloff is unwarranted that wooe seen in a number of these names? >> no, not really. we started the year with absolutely no buys in the high multiple names. no buys in internet because so much of the growth in the stocks was driven by an expansion of multiples. not supported by earnings growth. so i actually feel like the pullback has actually been largely warranted because there really wasn't the fundamental earnings to justify the valuations. even after the pullback, twitter is still an astounding 887 times
ebit ebitda. there's really no growth rate that can justify that. actually, there are subscriber numbers and user numbers have been underperforming expectations. you look at a name like facebook which i think is still kind of expensive, trades at 20 times ebitda. you want to get super cheap, go to google, 20 times earnings, 12 times ebitda. in periods like this, you really have to flight to quality. and google remains kind of the best in class in advertising. the netflix upgrade was more of a speculation. buy. i think that the pullback actually was unrelated to the current market backdraft. it was really just about fear of competition when it actually didn't materialize. and so with that backdrop going into what was a very strong quarter from them, people were staying at home. we also had a lot of content. season two of "house of cards," i think, did very well. and so i think that was sort of more of an opportunistic move. the reality is, i'm not going to
try to pick a bottom with these high multiple names. i don't think there could be a buy f bottom for a while. >> tony, two reasons to sell. i'm going to sell a stock because i want to buy another one because i think the stocky own is done. or i sell braz i'm afraid of all stocks. today it seems more like the latter. gold up. the vix is up about 10%. they're sort of mirroring the overall market. is this a rotation, or is this fear? >> i think it's fear. >> fear of what? >> i think always the fear in social media that things aren't going to be sustained. i think people question business models in the same way it questioned google. facebook, people were fearful of mobile and now it's like you can't get enough mobile to drive you. in the case of twitter, they're slowing, but they have 300 million people that are actually going to be using the service in a couple years. and the story isn't about the users. it's about getting a lot of pricing leverage. you know, we think about this in the world of tv as much as i like cnbc, it's not a broadcast
network, but yet it grows every year because there's more advertising dollars that go to it. >> tony and dan, thank you for your thoughts. and herb greenberg will join us with his two cents' worth on this subject right after the break. in the meantime, let's send it over to dominic chu with a quick "market flash." >> mandy, do you remember the time when fire eye was one of those momentum stocks we couldn't stop talking about? check it out now. the cybersecurity firm, it's trading down 11% on the day since hitting its record high of $97.35 back on march 5th just about a month ago. it's lost a whopping 43% since that. but for the year, it's still more than a double. so if you talk about big swings, fireeye and cybersecurity, definitely one of the poster children. back over to you. >> i'll follow up on that and say that of the 12 or so cloud computing fames on my screen right now, none are up this month. the one down the least is real page, down 3.5%. cornerstone, demandware and
service now all down more than 15% in april. coming up next, one man who called today's pullback. he said yesterday's rally didn't make sense, and it looks like he's right. larry kudlow joins us next. we just referenced it, there's your vix. up right now 10%. so the fear, a little bit higher. we've got more on your market selloff after the break. mine was earned in korea in 1953. afghanistan, in 2009.
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yes, the nasdaq is having its worst day since june 2012, but this is by no means a full wholesale tech selloff. in fact, we have found one name in that space in the tech space that is doing very well today. it is hewlett-packard up 2.2%. two things of note, deutsche bank saying it is a buy. also hp having its overweight reading reiterated by morgan stanley. they also upped the price from $38. so we've found one bright spot out there for you today. let's bring in herb greenberg on the phone, joining us on the so-called selloff of the momentum stocks. what is your take? obviously the higher valuation names are getting hit harder than the other ones, but everything pretty much down. >> when i see this momentum in the reverse, the first thing i want to know is how the -- those stocks that were so joyfully and gleefully squeezed that were heavily shorted, how they're doing. and on that, i checked with paul hickey because he does good work on that kind of metric. and actually, it's interesting because when he looks at the s&p
1500 and he looks at the most heavily shorted stock ifs that which includes faz d s nasdaq a 500 stocks, you see in april, the most highly shorted stocks are down more than the market as a whole. and i think that's actually significant. and i think it actually gets to the heart of what we've talked about all along in this market, and that is when you squeeze them out, the stocks have no natural buyers when they fall. and they fall that much harder. >> you know, you've been watching the markets for a very long time, herb. a lot of people follow what you say. what advice would you give in the current environment? >> you know, it's hard to give exact advice because you don't know where it's going to go. is it going to be the old proverbial catching a falling knife or is it going to be the great buying opportunity of all time? and when you get guys like bill miller and then another guy like carl icahn, two extraordinarily bright and wealthy guys totally disagreeing on the question and the answer to the question, it comes down to basically it depends on your tolerance for
risk. >> but that's what it takes to make a market, right? you've got to have the bids. you've got to have the offer. sometimes people sell, herb, because you're afraid. sometimes the market goes down because there's no bids. >> here's what i found out. >> there's no buyers out there, which is different than selling pressure. >> which is exactly what i was saying especially when you remove the short sellers from the market because they've been squeezed out. but there's one thing i've learned in watching this. and you know i always like to watch the stocks that are going to fall, right? i've watched these things, and at times the pendulum swings too hard both ways, right? and it swings too hard when they fall as well. the only thing you have to ask yourself is, is there a structural change that is going to cause these things to go further? in other words, is qe gone? are rates going to rise? is the economy going to get worse? what will this earnings season bring? we have seen so many times that in earnings situations, we could see these earnings come out, we'll have two weeks of good earnings. >> listen, herb. okay? sometimes you need a hangover to remind you why you don't need to
drink so much at night. is a drop necessarily a bad thing for the equity market? what's wrong with a little pullback? >> it is extraordinarily cleansing and important. you need these setbacks. it's like earthquakes. you need to reduce the pressure under the earth's surface in the earth's crust. >> that's an analogy. >> thank you very much, herb greenberg. let's talk more with larry kudlow. cnbc senior contributor. we have a lot of things we want to talk about. some say we're going through volatility. others say after the incredible double-digit gains last year, a little indigestion isn't a bad thing. put in that contest, we're not doing so badly. >> fair enough. i like what he said before. you've got a 5% or 6% correction here, it's a gift. as long as profits are rising, which they are, i'm not worried about the speed of the rise. i'm just saying as long as profits are rising, they're the mother's milk of stocks, these corrections are terrific opportunities to come on in and buy. that's my take. >> do you think the markets
overreacted yesterday what we heard out of the minuted from the fed? >> i just want to say anybody who makes short-term moves on what the fed says on any given day should really have their head examined. they need talk therapy, and they need it in a very serious way, okay? i don't know if they need meds, but they need talk therapy. >> could you put an algorithm model on a psychiatrist's chair? you get my point. maybe the computers are in charge. >> i just want to say an interesting point. the federal reserve, regarding interest rates, let's take that, they're going to end qe. we know that. the federal reserve regarding interest rates does not know. and it's silly for them to have all of these cacophony of sounds like we had yesterday. five guys say this. six guys say that. my friend who is a reporter must report this, but that doesn't mean it has any meaning. the fed has no rules. they have no compass. they're playing this short run, daily, weekly, monthly just reich the rest of us. do not buy on these little fed
wiggles. and can i make one other point? the fed's obsession with something called deflation is completely misplaced. what this country needs is a low inflation rate. price stability. and a strong reliable dollar. listen. low inflation is a tax cut. low inflation makes your wages go longer. low inflation makes your business income go longer. prices falling, computers, iphones, airplane tickets, hotel rooms. this is terrific thing. there is no sustained deflation. this is utter nonsense. we need price stability. and if you want better economic growth, which we all do, okay, abolish the corporate income tax, okay? go for a flat tax. roll back bad regulation. that will create growth. the fed -- this deflation argument, we have to inflate from 1% to 2% or 3%. it's nonsense. >> and you say that without saying path to prosperity which, by the way -- >> we need free market
capitalism mostly on the fiscal side, but the federal reserve needs to -- by the way, the dollar is looking a little shaky to me. >> it is. at three-week lows right now. >> i don't like that one bit because i'm for king dollar. i don't like that one bit. let's move on. >> this is an ego business, right? you know, it's so hard to say i don't know. we always want to act like we have the answer on this side of the camera. larry, i don't have any bleeping idea what the fed is thinking right now. >> i agree. >> no clue. >> i agree. >> but you're supposed to have the answers. >> listen, if the debate is about moving the fed funds rate, the short-term rate next year, they don't know. i don't know. >> who knows? >> no one knows. >> someone better no. >> no, it will play out as it plays out. all's i'm saying is, if you don't have rules and targets, this is what bothers me about the fed. and i don't think the labor market is the right target. i think they should worry about the dollar. i think they should worry about commodity prices and gold. as i say, i don't like the sloppy dollar right now.
king dollar will hold down inflation. if you had -- look, what's your inflation rate? 1%. cpi. if this country could have an inflation rate of 1% for the next 100 years, it would be terrific. i don't need 2. i don't need 2 1/2. i don't need 3. if the price of oil went to $75 because the dollar is stronger, i think that's great. that the fed should worry about. >> let's end on a positive note which actually, by the way, could also be a double-edged sword. and that is about the dividend increases. the first quarter of 2014 saw a record number of dividend increases. >> fabulous. >> i think 1,078 dividend increases all together. >> you're showing off. you're showing off. >> i read it. i didn't just know this information off the top of my head. rock and roll, right? >> yes, i love that. so there can't be anything better than paying out a lot of dividends. it's absolutely terrific. i call it a tax cut for investors. it's a tax cut for investors. you know these companies making
good money, they have huge cash, okay? they're kind of like corpocratds. they remind me of government bureaucr bureaucrats. i'd rather they give the individual investors the money because i think many of the individual investors will reinvest the money better, start new businesses, and keep it in the usa, not overseas. and i think this dividend play is so bullish, so optimistic. and by the way, what is it? 2.5% dividend yield on the s&p? that's pretty good. >> you want to say something? i can tell. >> i agree but i respectfully disagree, but we don't have time. next week. i'm off tomorrow. can we argue about this next week? >> yes, of course. >> i like dividends to a point. i think reinvesting in your business and providing capital toward growth and maybe jobs is a better thing. >> but maybe -- >> in some respects. >> bri, i agree with this.
but, but what i'm suggesting is sometimes the individual investors will make better use of this cash as dividends than the corpocrats running the company. >> let's hope. larry, always a pleasure to see you. still ahead, retailers feeling the spring fever. >> yeah and biogetting whacked again. we continue to dig in on these markets. by the way, the nasdaq is biggest decliner of the major indexes. right now down 2.4%. the dow off 170. fluid day. we're back with more after this. financial noise financial noise financial noise
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welcome back to "street signs." we can see here the s&p is down by 1.4%. earlier on in the day, we did have three green squares. staples, utilities and telecom. the day is receleating. defensive names getting a little more of a bid. brian, it is very clear that we are down by 1.4%, and the s&p has wiped out its gains. >> they love those telecom dividends. thank you. apparently cold weather is to blame for everything. but some retailers may actually have a point. some. you can't drive, you can't shop. but spring fever now has many
shoppers ready to bust out those credit cards. courtney reagan is at the global retailing conference in the capital of cold, tucson, arizona. and joins us now, courtney. >> reporter: yeah, that's right. the exact opposite, rather. but you know, wall street actually had pretty low expectations for march same-store sales out of the retailers. and it's not really a surprise. spring has been really slow to sprout across all of the country. easter is three weeks later this year than last year. and consumers really took a hit in their budget from those high heating bills. still, there have been some positives. look at costco, the wholesaler actually posting core same-store sales, up more than 7%. if you look at the all-in number, it still beat consensus, even stripping out the benefit they got from the extra day in march that they didn't have last year because of the easter shift. they still are above the 12-month average for comps. deutsche bank reiterating their buy saying the street is giving costco enough credit for how operationally efficient they've been in a choppy retail environment. "l" brands, the brand that owns
limited, victoria's secret, bath & body works, down 1%. better than expected but still not inspiring the street. shares down actually fairly decently today in today's trading. more so than some of the competition. analysts think they'll have to up those promotions to try to get consumers in the store spending when the weather eventually does turn and hopefully that will be very soon. retailers sort of hanging hope on the easter bunny, hoping that will help spur some sales. we're still waiting on gap. those numbers out after the bell. analysts looking for down to nearly 5%. probably not going to be a good one. back to you. stick around. let's also bring in retail analyst mary epner. there's a store i walk by every day that's got beautiful spring frocks. there's nobody inside. nobody has had inclination -- >> what is a frock? a dress, a dress. finally the sun is coming out. >> yes, it is. yes. >> finally we're going to get some shoppers. >> i don't know about that store, but the dress business is actually quite good for
department stores right now. and so hopefully your frocks will start to sell when it gets really nice out. >> are we going to get a big snapback? >> yes, we are. it appears so. the stores are very optimistic about it. the ones who have lost out a little bit for the spring season thus far are those who merchandise sandals and very wear-now product. but otherwise, you no he, we still see some good momentum in stores right now. >> the only retailer to really lose sales in my view is a restaurant. you can't go back in time to have dinner. wednesday snowed in. i missed dinner. i'm not going back. if you need anything else, you're going to go get it. >> correct. >> what do you make of retail ceos that blame the weather constantly? >> well, i think, you know, not to be disrespectful, but that's a little bit lame. so you can't consistently do it. >> you're nicer than i would have been. they may fall out of that quarter, fair enough. >> right. >> the end of march. we push it back to the beginning of april. >> i think the big question is, brian, who has the categories that are performing well right now? the athletic apparel and shoes. shoes, in general. the frocks, the dresses. i used it.
and other categories that we see trending for april. and tawil be ladies' dresses and suits, guys' suits, things like that. so as long as you have that in your assortment, you know, we think you'll win. >> you're saying it's lame to blame. it's lame to blame. >> very good. i loolike it, i like it. >> which name do you think will get a nice lift this spring? >> i think jc penney, believe it or not. never thought i'd say that. jc penney looks really good. they have athletic, they have dresses. for compared to last year when you look at the entire department store space, there's still a lot of work to do. but compared to last year, absolutely. still like macy's, too. and we love, you know, and then a lot of handbag companies will fare well in this particularly with easter. >> thank you so much for joining us today. >> thank you. >> mary and courtney. speaking of retail, by the way, can you guess the best performing retail stock this year?
do you know what it is, mary? >> i don't. >> not a true retailer. we have a sneaky tease. plus stocks right now are sharply lower. we're all over this selloff when "street signs" returns. the dow off by nearly 200 points there, and the nasdaq is the biggest loser percentagewise, off by 2.6%. stick around. the cnbc realtime exchange market snapshot is sponsored by interactive brokers. , are we str tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles
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we're going to bump in with the nasdaq 100. 99 of the 100 are in the red. one stock is in many the green. my math, mandy, says that's 1%. but the name that is up is actually an interesting name. c.h. robinson, logistics company. transports. so the fact that one stock that's up is a transport with no specific news today. i'm trying to find a sliver of hope in the market today. >> okay. let's find the slivers. okay, daily rundown, stock analysis and news you can use. we call it "street talk."
first up, the best performing major retailer stock this year. we teased it going into the break. and here's the answer. shockingly, it is -- >> rite-aid. >> not picking on them, but this was a multicent stock a few years ago. >> 20 cents back then? >> yeah, it's gone to 7 bucks. unbelievable run. rite-aid soaring after forecasting 2015 earnings above street estimates. quarterly profits stronger because of pharmacy sales. now, be careful. rite-aid's at $7.02. the average target of analysts, $6.72. about a quarter below the current price. >> look at that one-year move. nearly a 3% gain. a twofer. anadarko. >> credit suisse threw them together in a note saying both are underappreciated midstream value stories. they think that maybe anadarko is underappreciated to $7.17 a share. and devin, $8.21 a share. anadarko up about 15%.
>> the analysts see upside on the securities side. it's down by nearly 4%. >> yeah, nothing's getting help today. >> in a down day. >> b. riley upgrading the name. they also like increased sales productivity. their target, $68. that's about 28% higher than the current price. >> stock number four, skater shop zumies getting an upgrade. it is helping this stock. >> yeah, rad, dude. not rad, rite-aid's ticker. up 4% right now. their target increased from 31 to 27. so that's about 20% upside. preliminary march same-store sales up 2.4%. versus the 1.4% estimate. >> let's bring you an under-the-radar pick. an initiation of buy at citi. >> not a name we've talked about for a long time. remember, this company was spun off of ford 14 years ago. analysts at citigroup and the stock's up .2% had their target
at $103. that's about 15 bucks higher than it sits right now. let's do "talking numbers." hitting one stock each day. today it is blackberry because the ceo, john chin, saying if i cannot make money on handsets, i will not be in handsets. very clear. later saying that comment was taken out of context. let's start talking numbers on the technicals, richard ross on the fundamentals side, mark lichtenfeld. it's clearly now in the psyche of the market. is there any case if they kill off the blackberry? >> this morning i was mentioning to a hedge fund manager friend of mine that i was going to be on discussing blackberry. and his response was i forgot blackberry was still around. that's either a very bad sign for the company or a great contrarian indicator. i'm not sure which. the numbers are god awful. last quarter they lost. revenue was down 64% year over year and 18% quarter over
quarter. that being said, john chen, new ceo as the company, i've known him since the '90s. he's a very skilled executive. i'm a big fan. and he's been talking about changing this business model from handsets to software. if anybody can do it, it's john chen. that said, it's a pretty drastic change in the business model. it would be like if cnbc changed from business news to sports. mandy, you might not stick around. it could work out, but you probably wouldn't stick around. >> what? >> what are you saying about my sporting knowledge? >> she throws a wicked googly on the cricket pitch. >> you're absolutely right. >> sydney wombats or whatever team you support over there. richard, we've got a stock down 19% over one month. technically any reason to buy blackberry? >> brian, there's absolutely no reason to buy the stock. in fact, it's been so long since i saw a blackberry handset, i thought they were already out of that side of the business. but when we bring up that chart, this is clearly a sell on the technicals alone.
when we look back at the chart over the past year, the key feature of that chart, of course, is that down trend that we're all familiar with. now, the stock does have a little hope there late last year, early this year. a fierce rally. shares up almost 100%. but we run right back into key resistance at that trend line. we establish a very bearish double top. and then earlier this month, not only do we break down between the neckline of that pattern, generating a confirmed high conviction sell signal, but we also take out the 150-day moving average which removes all hope. this stock will revisit the old lows. i have a $6 target on the stock. keep in mind, the nasdaq is a sinking ship. do not attach yourself to the anchor here, brooip. brian. this stock is a sell. >> wow. almost no hope. three words that kind of say it all. thank you very much to both of you. thank you for joining us. and by the way, go, wombats. if you like this technical versus fundamentals stuff. check it out with yahoo! finance. still ahead, we're all over
this selloff. two of the very best market minds will be joining us next about what's going on. >> yeah, and it should be a big final hour of trading. the momentum is gone. kelly evans, what is coming up on "the closing bell"? >> mandy and brian, thanks. scott will be joining me. coming up, we've got a huge selloff on wall street. it is erasing gain trz that two-day rally we just had. is it time to hit the panic button on this market, or is it time to get out the shopping list? this is going to be a lot of what the debate resolves around. two exclusive interviews you also don't want to miss. conoco phillips ceo giving us his outlook for energy prices. we'll talk about what's happening with russia and europe over natural gas. also, martha stewart will tell us what she's got in store. she'll be here at the stock exchan exchange. we'll talk about the ibb and whether it's the new vix and what's going on in an important, critical last hour of trade. all that and more ahead on "the closing bell." tdd#: 1-888-648-6021 there are trading opportunities tdd#: 1-888-648-6021 just waiting to be found. tdd#: 1-888-648-6021 at schwab, we're here to help
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11-plus percent. could be a coinkydink. i don't think so. >> let's join bob pisani. you've been talking to a number of traders about what's going on today. what's their feeling about what's happening? >> reporter: well, there's a bull/bear debate. i gave you the bear debate last hour that it's tough to push the stock market to even further new highs when you have a modestly slow-growing economy. let me give you the bull position because it's very much present out there. the bull position is, listen, we see slow improvement in the economy. if that's the case, why are we paying a fortune to have these high-growth, high-momentum, whatever you want to call them, nam names? why don't we start rotating out of these names that we've made a fortune in, and let's go into some of the more old-school names and the names they bring up all the time to me is ibm. let's look at that. and that story is actually very interesting because we've been seeing that recently. ibm, for example, you put that up, it's been doing fairly well recently. we've seen caterpillar, for
example, hold up very well as another growth name here. put up year to date. look at cater pi eecaterpillar. down side. the s&p 500, and i've been pointing this out all day, is flat on the year. i know we're obsessed with these three dozen growth names. but if you start focusing on the idea that maybe the economy is getting better down the road and we'll see that and start dealing with it now, that's what makes a difference. and emerging markets. have you noticed the "u" this year? sell emerging markets? january, that's all we talked about. they sold the whole thing off going through february. and the last three weeks, suddenly they've rocketed back. that is a very tough market to call other than china stimulating. that's the only thing that's really going on there, guys. i'd stick with the bull and bear and whether the u.s. is the best place to invest or not right now. >> thank you very much, bob. we can always count on you for bringing the silver lining, finding the good spots on a down day. thank you, bob. >> and i'll add a little bit to bob's point here. i literally was one, two, three.
94 s&p 500 stocks are up more than 10% this year. hardly a collapse. >> it's hardly. >> let's bring in matt mccormick as well as art cashen from ubs. so happy to have you on. thanks so much. what do you make of what's happening today? >> a couple things. quick folkfolklore. thursday before an option expiration week has a history of volatility. we've got some of that going. where we are right now is they are fighting for survival. the low in the nasdaq composite today is 4065. they're trying to bounce off it, make it a pseudo bottom and see if they can pull it back together. if the dollar were stronger, i would tell you we're into a major flight to safety here because you see gold up. you see bonds up. and you see the kind of stocks that are being hit. this is a real test going on here, brian. >> but it really feels as if we've forgotten history, matt. i mean, here's the thing.
for the longest time, it was the teflon market, the market that just kept on going up no matter what you threw at it. and we became complacent. and now we've got a bit of a two-way market, a little volatility thrown in, and people are like my goodness. are you worried about what's going on, many the? >> i'm actually optimistic about the dividend space. with bob or art, we're talking about the volatility and you're seeing a rotation out of the junk, out of the cotton candy that have seen valuations back to '07, mandy. i think investors are saying i'm going to be a little bit more rational. i'm going to take some chips off the table. i'm going to look to blue chip stocks, look for downside protection. people forget, dividend-paying stocks outperformed in the '30s, the '70s, the 2000s, 2008, 2011 and today. it's because they offer downside protection, but yet they give you income and they can still participate in stocks. >> have you got any particular names in the dividend space you would like to point out? >> i like procter & gamble, j&j, novartis, tech like apple and qualcomm.
i like blue chip names that pay you more to own them. go with balance sheet strength in this type of environment. i think it's going to serve clients well in a volatile, i think choppy market to come. >> art, do you think this is the start of a bigger selloff to come, or is it just kind of a small blip or rotation, whatever? >> it could turn into a bigger selloff. and we'll know very shortly relative to today if they come down. again, they're headed in that direction and break that 4060. then you'll probably get a secondary round of selling, and then it will become essential that they defend 4050 in the nasdaq to prevent things from kind of cracking open. >> but what would you think is fair value in the market, art? >> well, i would think that we're getting close to very important testing. on another support level, you've got to look at the s&p. 1837 to 1840. it's held there four times. if it cracks there, you'll bring in secondary selling. so you're at some very critical technical areas here, mandy.
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we continue to follow stocks especially in technology. the nasdaq is down 122 points, nearly 3%. the three worst performing names in that index, alexion and lumina. >> the health care sector the big underperformer today. the ishares nasdaq biotech index trading down. among the names getting whacked, gilead sciences. alexion pharmaceutical and also b biogen, losing a whole lot of ground. it really feels like the ibd has become the poster child for this momentum or no-momentum sell-off
we've seen in the market. some are saying maybe it is even the new conviction which traditionally has been the fear gauge on wall street. >> i'm having a little trouble here with the birthday party. but, yeah, biotech obviously has been a dramatic and substantial outperformer. that's been led i think by a lot of innovation. i know we'll talk about hepatitis c and some of the groundbreaking new drugs that are reaching the market. i think that what we are seeing is a correction. obviously everyone is asking the question is it over. i think that certainly nothing goes up to the sky each and every day, but again i think we are seeing true innovation in the sector, maybe stocks got a little ahead of themselves but i think there's still going to be demand for these life changing therapies that we are seeing and the benefits that will throw to the companies involved. >> the sell-off is ridiculous in certain ways because every biotechnology company is so different.
some have products on the market, some are a wing and a prayer. what do you make of the sell-off of everything? >> i think throwing out the baby with the bath water so nobody wants to be the last man standing in the sector is obviously going down right now. people have made a lot of money earlier. they want to lock in those gains. it certainly is is dndiscrimina. at some point the dust will settle and the market will make the distinction between companies that have real value and will produce results. >> which ones do you think have been thrown out with the bath water? >> gilead is a perfect example. the stock is down 5% today. we have news out of the world health organization talking about a recommendation that is really dramatic in terms of identifying hepatitis c patients around the world and aggressively moving to treat those patients with these new therapies. these new therapies not only provide much more tolerable drugs to patients but they actually can cure 98% of
patients within 12 to 24 weeks. that's profound, according liver disease, transplantation. you know, this is very, very dramatic stuff that we're seeing this industry produce. >> that's the perfect segway to what you originally brought on to talk about, that is the w.h.o. giving strong endorsement of two particular hep-c drugs. they're very expensive. $1,000 a pill? that's insane! absolutely insane. that's what some thought sparked the biotech sell-off in the first place when the whole sector was put under a private scrutiny. >> absolutely. a public shaming on a $1,000 a pill therapy. $84,000 for a full course of therapy. i think the biggest challenge this industry has is the good news is they are producing these
phenomenal drugs. the challenge is how do communicate what the value to society of these therapies are. so the price tag on an individual drug is very alarming. but, these are patients that would be costing the health care system an enormous amount of money downstream in developing liver disease, perhaps needing transplantation. i think we need to look at the $84,000 as it relates to saving a life, eliminating the consequences of liver disease and transplantation. that's the challenge that this industry is going to be faced with because this issue is not going to go away. if you take the 2 million patients in the united states with hepatitis c that are identified and you multiply that by the price tag, this is 1$33 billion market. there is going to be a lot of scrutiny and certainly all patients won't be treated.
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the tech-tev naheavy nasdaq. the biggest losers, lumina and alexion pharmaceuticals. one quick point. apple. we haven't talked about apple. apple is down like everything else but only down 1%. it is down less than half of overall nasdaq. just something to watch. >> let's also take a look at the bottom. tesla is one ever those. i know you hate the word momentum but nonetheless it is an oft-used word. it is one of the poster children for momentum names. down by 5.3%. bob pisani said remember, despite the sell-off today, the s&p is pretty much flat on the year. the dow down about 2% or so on the year. the nasdaq down 2.6% on the year give or take a couple of points just to put this all in a little bit of context. >> it's been a heck of a run the
last only not 12 months but the last five years. gold is up $14 an ounce. about 1% for gold. we're not seeing gold up 3%. not seeing t inin ining vix up . maybe a little sell-off is not a bad thing longer term. >> thank you for watching "street signs," everybody. closing bell is next and they'll continue watching the markets. welcome to "the closing bell." i'm kelly evans down here at the new york stock exchange where a major sell-off just wiped out the gains we had on a pretty strong two-day rally. >> i'm scott wapner in for bill griffeth. you have yesterday's gains wiped out. nasdaq down 3% just a short time ago. it's come a little bit off that but not really. >> art cashin saying watch the